Palmetto has a plan to save energy and money in city buildings. Here’s how
In a partnership with Florida Power and Light, the city of Palmetto is looking to replace several hundred lights and some other utilities across the city to save money and energy.
FPL’s Energy Savings Guarantee program allows FPL and the city to make upgrades to water and electric fixtures and use the money saved on bills to pay for the upgrades.
Most of what will be included in the deal are lights in the city - more than 480 of them - including those at City Hall, the wastewater treatment facility and FPL’s streetlights. The upgrades will include retrofitting or replacing some fixtures and installing LED bulbs.
The to-do list also includes replacing items like HVAC systems and thermostats and water fixtures with new low-flow types at City Hall and installing new windows at the Public Works building.
Though the city would need to take out a loan for the total cost of the project, $252,031, the program with FPL states the city would be able to pay off the loan through the savings accumulated through the changes to equipment.
“On an annual basis, it appears to get around $27,000 in annual savings from what they do. We would otherwise be paying but won’t because of the changes identified,” city clerk Jim Freeman said.
The loan would be paid back over 12 years with a 2.95 percent interest rate.
Over those 12 years, the total annual guaranteed energy costs savings calculated by FPL is $310,634, between $21,000 and $30,000 a year, according to a June 2019 energy savings guarantee.
FPL won’t start collecting payments on the work done to make the improvements until six months after the projects are complete, according to Madonna Rykken with FPL. This ensures the city has time to accumulate funds from the savings to make the payments.
The city also hopes to see a small profit of about $17,000, under some assumptions, thanks to the anticipated savings.
“It’s still a win-win any way you want to look at it,” director of Public Works Allen Tusing said.
The partnership with Palmetto was first brought up when FPL contacted the city in January 2018 to discuss changing the streetlights from sodium lights to LED. The conversation led to other areas that could use upgrades, too, and those savings could be used to grow the savings pool to fund the program. FPL performed a feasibility study and the results were presented to the city.
Palmetto city commissioners accepted the feasibility study by FPL Monday night and authorized the execution of the contract, pending approval of the city’s attorney. Staff was also approved to lock in the interest rate, which Rykken noted was lower than other similar FPL projects she’s seen.
The next step, after getting the final approval of the attorney and securing the financing, will be the construction work.
Rykken said FPL has about $300 million worth of these guaranteed energy savings programs going on right now with other municipalities, counties and school boards.